Cox v. Momar Inc., No. 13-1721 (8th Cir. 2014)
Annotate this CaseThe trustee filed an adversary proceeding to recover as voidable preferences two payments that Momar received from debtor during the 90 days prior to filing a bankruptcy petition. On appeal, the trustee challenged the district court's grant of summary judgment excepting the second transfer. The court cautioned district courts and parties in future preferential transfer cases that the Seventh Amendment right to jury trial must be respected and therefore, unless a proper demand for jury trial has been waived, the normal rules limiting the grant of summary judgment applied. On the merits, the district court did not clearly err in finding that the preferential transfer at issue, a payment made to a regular supplier 26 days after the supplier's invoice, was made in the ordinary course of business between debtor and Momar. Accordingly, the court affirmed the judgment of the district court.
Court Description: Civil case - Bankruptcy. District courts and parties in future preferential transfer cases are cautioned that the Seventh Amendment right to trial by jury must be respected and therefore, unless a proper demand for jury trial has been waived, the normal rules limiting the grant of summary judgment apply - see In Re Healthcentral.com, 504 F.3d 775 (9th Cir. 2007); given the payment history between the parties, the district court did not clearly err in finding that the preferential transfer at issue, a payment made to a regular supplier within the time frame normally seen for such payments, was made in the "ordinary course of business" between debtor and the transferee.
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